CNN has announced plans to lay off several hundred employees as the company’s chief executive, Mark Thompson, highlighted significant and lasting changes in how audiences engage with news. In a memo to staff, he indicated that approximately 200 jobs, equating to about 6 percent of CNN’s workforce, would be impacted as traditional cable TV viewership declines sharply.
These layoffs are part of a broad restructuring initiative as the media organization seeks to move beyond conventional television. Thompson mentioned that, despite the layoffs, the overall headcount is not expected to decrease since the company is investing $70 million in its digital operations, which aim to generate $1 billion in revenue by 2030.
CNN is focusing on developing a streaming subscription service akin to television, targeting global device accessibility to compensate for the drop in traditional linear TV. The network anticipates creating hundreds of new positions, with the first 100 roles expected to be posted and filled in the first half of 2025.
Thompson emphasized that the investment would not only go toward product and technology but will also enhance high-quality journalism and storytelling. CNN is actively negotiating with distribution partners to launch the streaming service later this year.
Since Thompson took over as chief executive in 2023 with the goal of revitalizing the struggling cable network, he has prioritized digital growth in response to decreasing viewership in traditional television.
CNN continues to face challenges in competing with other networks such as Fox News and MSNBC. This struggle was highlighted recently when viewership for presidential inaugurations saw significant declines, with only 1.7 million households tuning in to watch a recent inauguration compared to 10 million in 2021. Overall, this past inauguration’s viewership was the lowest in a decade, with fewer than 25 million Americans watching Trump take the oath.
Thompson noted that these changes are part of CNN’s ongoing adaptation to profound shifts in how news is consumed globally, transitioning from linear formats to digital platforms. He pointed out the necessity of these adjustments to ensure CNN remains a leading news organization, stating that high-quality, reliable news sources are increasingly vital.
Further reorganization of CNN’s newsroom was also announced, following last year’s appointment of Alex MacCallum from the New York Times to oversee the digital transformation. Thompson mentioned that MacCallum had already launched a direct-to-consumer subscription product and made enhancements to CNN’s digital presence.
In addition, Thompson outlined plans for more digital video content, the introduction of a lifestyle-oriented service, and the establishment of a new premium digital advertising platform, along with restructuring and cost-cutting measures for both domestic and international programming.
photo credit: www.ft.com
